Kroszner Says Fed Likely to Pause After December Hike

The transcript discusses the Federal Reserve's approach to inflation and interest rates, considering recent GDP reports and global economic factors. It highlights the Fed's potential pause in rate hikes, the impact of tariffs, and the global economic slowdown. The discussion also covers the neutral rate, GDP growth, and recession risks, emphasizing the Fed's data-driven strategy and independence from political criticism.

What is the Federal Reserve's goal for inflation?

• Below 2%

• Below 1%

• Above 3%

• Exactly 2%

Why might the Federal Reserve consider pausing rate hikes?

• Because of a strong economy and modest inflation

• Due to high inflation

• To align with global economic trends

• To encourage more inflation

What is a significant external factor affecting the US economy?

• Interest rates

• The neutral rate

• The trade war

• Domestic housing market

How have tariffs impacted the US economy so far?

• They have boosted economic growth

• They have caused a major recession

• They have led to high inflation

• They have had a small impact

What is the expected growth rate for the US economy in 2019?

• Below 1%

• Around 3-4%

• In the mid 2% range

• Above 5%

What is a key concern for the Federal Reserve regarding economic reforms?

• Short-term stimulus leading to inflation

• Immediate economic growth

• Decreasing interest rates

• Increasing unemployment

How does the Federal Reserve respond to presidential criticism?

• By changing their policies

• By maintaining their independence

• By aligning with the President's views

• By increasing interest rates